The end of the year is just a few days away, and most of us are counting down the moments to a fresh start. Yet it seems that the action isn’t quite over for the UC&C landscape just yet. In the last few weeks, we’ve seen a flurry of last-minute deals, as companies set themselves up for a more powerful launch into 2021, and there’s a buzz on the horizon.
It seems that no-one is willing to go into the new year lying down. After 2020 failed to meet our expectations, companies in the Unified Communications landscape have grown at a phenomenal pace, driven by the demand for better teamwork and interactions in the new landscape. Organisations are recognising that to prepare for the new challenges of an upcoming year, they need to invest in the right opportunities – and fast.
RingCentral recently acquired DeepAffects, and Cisco acquired Dashbase. Dubber purchased Speik, and recently, we saw the merger of Slack and Salesforce. So, what does all of this mean?
Consolidation is Common in UC
In the Unified Communication and Collaboration environment, consolidation is something we see pretty frequently. Throughout 2020, we saw a number of deals pushed by the arrival of changing workspaces and increased demand. However, the majority of the purchases that took place this year seemed to be focused on adding new technology and functionality to systems. Companies aren’t just interested in grabbing more land and earning more reach.
More than ever this year, vendors in the UC space have discovered that if they want to prepare for the future, then they need the right, flexible technology. For a lot of businesses, this means thinking ahead and making the acquisitions that will set them apart from the crowd as early as possible. My prediction is that we’ll continue to see a battle for new technology in 2021.
More vendors will be flicking through the startups on the market to see what kind of disruptive technology they can tap into for the workplace of tomorrow. Established software firms and innovators that can add extra value to the UC stack in new and impressive ways will be hot targets.
Even the larger companies know that they can no longer rely on heritage and history alone to maintain their space in the current market.
These organisations need to evolve, just like the rest of us, and they’re looking for differentiators. Indeed, many big players have lost track of their customers in a world where solutions like Microsoft Teams and Zoom are becoming the heart of the communication stack.
Innovate or Perish in 2021
For years now, market leaders and analysts have suggested that an overwhelming digital transformation is necessary for a lot of communications companies if they have any chance of future-proofing themselves. 2020 brought this fact into stark focus, showing how quickly companies can crumble when faced with the pressure to keep with the agile disrupters of the industry.
Microsoft, Talkdesk, RingCentral, and many others have proven that they have what it takes to shift their technology stack to suit the changing needs of customers. However, there are countless companies that haven’t been able to pivot with nearly as much speed. The lesson that many organisations will need to learn is that companies invested most in developer talent and marketing will be the ones with a distinct advantage in the years ahead.
If you haven’t prepared yourself for the increasingly innovative demands of businesses and buyers in this new landscape, then maybe it’s time to reassess your strategy. Perhaps all business leaders should be thinking about how they can strengthen their existing position with help with some new faces, new ideas and new investments.
What’s Next?
The age of innovation that we entered with the pandemic of 2020 doesn’t end when the clock strikes midnight on December 31st. While many of us hope to leave some of the trials and tribulations of the year behind us, it’s important to take the lessons we’ve learned forward, and use them to invest in a brighter future for everyone.
I believe that as we head into 2021, we’ll see a flurry of postponed deals in the early months, and big dogs like Google, Cisco, Amazon, and Microsoft will continue to search for ways to differentiate. Meanwhile, this could be an excellent time for service providers to start selling. If you can’t keep up with the full-fat UC and collaboration offerings of the current landscape, maybe it’s time to start something new. There are plenty of buyers out there ready and waiting for your call.
Interested in finding out more about UC tech in 2020? Join us at our online conference and expo UC Summit 2021 in January.
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